Q: An employee has been on ACC leave since September 2023 and at the time had exhausted all her annual holiday entitlement. However, since she’s been on ACC leave her anniversary for annual holiday entitlement had ticked over.

She has now resigned as ACC has deemed her unfit for the job.

What rate does her annual leave entitlement get paid out at, considering she hasn’t been working since September 2023.

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A: ACC is counted as continuous employment, so the employee accrues leave and entitlement. On termination, annual holiday entitlement is calculated using the greater of AWE and OWP. AWE would be xero, but OWP is based on the week agreed upon in the employee’s employment agreement.